Despite a decline in fortified sugar sales, BUA Foods Plc, a consolidated food conglomerate led by Nigerian billionaire Abdul Samad Rabiu, saw its profit exceed $90 million in the first half of 2022.
According to figures in the group’s recently released half-year report, profit in the first six months of 2022 was N39.3 billion ($94.4 million), up from N34.56 billion ($83 million) in the first half of 2021.
The 13.72-percent increase in the group’s profit can be attributed to an 11.3-percent rise in revenue from N151.73 billion ($364.4 million) to N168.85 billion ($405.5 million), which was supported by increased non-fortified sugar and flour sales, which offset reduced fortified sugar sales during the period under review.
Earnings growth was also aided by the effectiveness of the group’s cost-cutting strategies, which resulted in a significant decrease in administrative and distribution expenses.
Despite the management’s cost-cutting strategies, the group’s finance charges increased slightly during the period, rising from N3.91 billion ($9.4 million) to N4.09 billion ($9.8 million).
The group’s retained earnings increased from N192.66 billion ($462.7 million) to N231.97 billion ($557.1 million) as a result of the strong financial performance, while total assets increased from N645.36 billion ($1.55 billion) to N593.47 billion ($1.43 billion).
BUA Foods, which went public this year, is the Nigeria-based BUA Group’s unified food business segment. BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta, and BUA Rice Limited are among the subsidiaries that make up the group’s operations.
One of Africa’s wealthiest businessmen, Rabiu and his son own 99.8 percent of the newly established food business.